Toshiba said in a statement that it had canceled all plans to produce tablets based on the platform citing “component shortages.” This is the third OEM to do so, after Acer CEO JT Wang publicly trashed Redmond over its decision to produce the Surface. HP said no thanks in June.

It’s no secret that Microsoft’s tablet has ruffled feathers. It disrupted a business strategy that the company followed for nearly three decades: build the platform, but leave the job of producing the hardware to your partners. This worked rather well for a very long time, but not anymore. These partners have become progressively lazier, so it’s time to lay down the law.

Apple is a great example of the positives of this top-down, vertically integrated approach. The company produces both the software and the hardware it runs on. The result? Products that work the way they’re supposed to with little fuss, and sets the standard by which all others are judged. While Microsoft — and Google too — has a much different business model, they would just as much like to see products that “just work.”

Nobody can do it better

Microsoft and Google have both now seen the light. Allowing your partners to run free and design hardware as they see fit is great for variety in the end product, but it does come with disadvantages. OEM partners drift from your initial vision, and this leads to a problems that you end up having to fix.

Just look at the amount of crappy Windows and Android-based hardware out there. While this is wonderful for the bargain hunter, it’s not for Google and Microsoft. A good portion of the problems experienced by us users have a lot to do with hardware issues, and not necessarily the software itself.

In these situations both the hardware manufacturer and the software developer are blamed for the problems experienced. OEMs have become lazy, and hardware quality has suffered. This in turn has held back Microsoft and Google, which have to cater to the lowest common denominator.

In the case of Microsoft, as Ed Bott wrote back in June, the Surface is not a move to kill the OEM. “OEMs can whine all they want about Microsoft’s decision to engineer their own hardware,” he argues. “But maybe when they’re through whining they can accept the challenge that Surface represents: You’re in the hardware business. Do better than this.”

That’s the point.

A good swift kick in the pants

Surface (and the Google Nexus line) are examples of this gentle prod to do better. Microsoft and Google’s in-house devices are built to work in concert with the software, not against it or around it: everything melds together in perfect harmony. These devices are also innovative, something that many OEM devices lack. That’s the biggest thing.

In a search for maximizing profit margins, OEMs have cut corners. While this has a lot to do with consumer’s desire for cheap stuff, it doesn’t help Microsoft’s case. Windows 8 is a big step forward for Microsoft in advancing the Windows platform. If it’s running on sub-par hardware, the consumer is not going to be happy.

Microsoft and Google’s flirtation with home-grown hardware is a kick in the pants to their partners. While executives like Mr. Wang like to complain about these companies encroaching on their turf, it would have never had to happen if hardware kept pace in the first place. Microsoft and Google aren’t hurting the OEM — they’re helping them. Perhaps driving this point home, Microsoft has said that the Surface will only be available in Microsoft Stores in the US and “select online Microsoft Stores” — it’s not like the Surface will be competing with OEM PCs on sale at Amazon or big box retailers.

The OEM isn’t dead

So we come to the subject of the OEM. Is this the end of the road, as my colleague Sebastian argues? Hardly. Instead, it’s just the beginning — a truly positive development.

With companies like Microsoft and Google in the mix producing their own devices, OEMs now know what is expected of them. The result will be products that are built with some thought put into them. The consumer wins because the quality of product increases as a result. OEMs will try harder because they have to.

Neither Microsoft nor Google have anything to gain from turning their backs on their partners, and likely much more to lose. Software is a much higher margin product then hardware is, so these companies will always want the OEM around to handle a far less profitable venture. At the same time, active participation in hardware manufacturing will set the example of what these companies expect, and limit the amount of junk on the market.

Could it lead to a drop in support of sub-par hardware? Maybe. But at the same time, that’s not necessarily a bad thing. One of Microsoft and Windows’ biggest minuses (and some may argue the exact opposite, for valid reasons) is the insistence on hanging onto legacy hardware.

Maybe it’s time for a clean slate. The transition may be hard, but the benefits might just be worth it.

Tagged In

It is a HUGE mistake for Microsoft to come out with both the RT version that will not run Windows desktop applications and the Windows 8 version that will. This will just confuse customers. They should only come out with the version that will run legacy desktop applications. That is their ace in the hole if they will simply utilize it.

casperi

May I kindly remind you that the “Oh Great Apple” actually doesn’t actually build anything. Samsung and few others makes the parts etc ,Foxcon slaps them all together in China.

As far as OEM’s becoming lazy well all you have to do is look at Lenovo ThinkPad X Series for this year. It’s getting a new ,newer keyboard more broken and less features than what every ThinkPad fan has come to love for over 20 years. Then Lenovo changed it for no other reason than to say hey New KB. Now their suffering 27% return rates on just the x230 alone. For the first time ever you can buy a new Lenovo X Series from them cheaper than you can eBay. Sad very Sad.

No OEM wants to build something from M$ that looks like a 6 year olds Tonka toy. They atleast want something they can put their name on and not be laughed out of every trade show they go to. “Wow you actually built that!!!!”… What a con.

In response to Kevin, this is actually a very smart business decision. Windows RT will run apps, office, webpages, videos, music and be priced right for an average tablet. Windows 8 pro will be like an ultrabook, and run all desktop programs and applications. I have a desktop computer that I use when needed, and a tablet I would use at school and work. I am very happy they made a less expensive, optimized, and stripped down version for the average user. Oh, and they made one for all you power junkies as well. Good job Microsoft.

This site may earn affiliate commissions from the links on this page. Terms of use.

ExtremeTech Newsletter

Subscribe Today to get the latest ExtremeTech news delivered right to your inbox.

Email

This newsletter may contain advertising, deals, or affiliate links. Subscribing to a newsletter indicates your consent to our
Terms of Use and
Privacy Policy. You may unsubscribe from the newsletter at any time.